|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||86.96 - 88.51|
|52 Week Range||53.35 - 90.74|
|PE Ratio (TTM)||27.61|
|Forward Dividend & Yield||0.52 (0.60%)|
|1y Target Est||N/A|
Total System Services (TSS) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP.
Mastercard (MA) is being covered by 37 analysts in April 2018, two of whom have suggested “holds” and 19 of whom have suggested “buys” on the stock. The company has received “strong buy” ratings from 16 analysts. Last month, MA was covered by 38 analysts, 18 of whom suggested “strong buys” and two of whom suggested “holds.” Another 18 analysts recommended “buys” on the stock in the month.
Mastercard’s (MA) PBV (price-to-book value ratio) is 18.08x on a next-12-month basis. The company has a premium valuation, as its competitors’ average is 4.2x.
On April 5, 2018, Mastercard (MA) made an announcement that from April 13 onward, all merchants in Canada and the United States would be able to eliminate the process of requiring signatures from cardholders. The idea focuses on removing the hurdles faced during the checkout process and allowing participating merchants to improve the experience. According to Mastercard’s management, merchants don’t believe there’s much use in requesting users’ signatures, so implementing the change will bring efficiency.
After the announcement of the imposition of tariffs by President Donald Trump, fears regarding a trade war gripped investors. Increased prices could lead to inflation, which could benefit payment technology companies (XLF) such as Mastercard (MA) and Visa (V). Mastercard is expected to witness upward momentum in 2018 primarily aided by its focus on the completion of transactions via mobile phones while maintaining the level of security desired by users.
Mastercard’s (MA) total operating expenses rose from $5 billion in 2016 to $5.8 billion in 2017, representing an increase of 17% mainly due to a rise in general and administrative expenses from $3.7 billion in 2016 to $4.5 billion in 2017. The components of the company’s total operating expenses include provisions for litigation settlements, advertising and marketing, depreciation and amortization, and general and administrative expenses. Mastercard saw a rise in its professional fees from $337 million in 2016 to $355 million in 2017 mainly resulting from consulting costs with respect to mergers and acquisitions.
This could indicate that investors who seek to profit from falling equity prices are not currently targeting TSS. Over the last one-month, outflows of investor capital in ETFs holding TSS totaled $14.83 billion.
In fiscal 2017, Visa (V) incurred total operating expenses of $6.2 billion compared to $7.1 billion in fiscal 2016—a fall of 14%. Between fiscal 2016 and fiscal 2017, the company saw an 18% rise in personnel expenses on the back of a rise in its number of employees and a rise in incentive compensation. Visa incurred marketing expenses of $922 million in fiscal 2017 compared to $869 million in fiscal 2016—a rise of 6%.
Investors pin hopes on Total System (TSS) on the back of its solid top line growth, financial strength, attractive valuation and many other positives.
This could indicate that investors who seek to profit from falling equity prices are not currently targeting TSS. Over the last one-month, outflows of investor capital in ETFs holding TSS totaled $2.03 billion.
37 analysts are covering Mastercard (MA) in March 2018. Two of these analysts suggest a “hold,” while 17 analysts recommend a “strong buy.” The company attracted “buy” ratings from 18 analysts, and the stock doesn’t have any “sell” and “strong sell” ratings. In February, 18 of the 39 analysts recommended a “strong buy,” and another 18 had given the stock a “buy” rating.
Mastercard (MA) posted net revenues of $12.5 billion in 2017 compared to $10.8 billion in 2016, which reflects a rise of 16%. Mastercard management is optimistic about its performance moving forward. According to Mastercard’s management, the company is expected to witness growth of 15% to 16% in its net revenues.
Mastercard (MA) is focusing on improving the customer experience to enhance customer loyalty. One of the company’s challenges in this respect it that it doesn’t come in direct contact with consumers. Mastercard also ensures that while executing the transactions, the consumers feel secure.
Mastercard (MA) witnessed strong momentum in its cross-border volumes in January 2018. The strong momentum in cross-border volumes was a result of several factors. Another factor that contributed to the momentum in the cross-border volumes was the holiday spending in Europe.
On February 27, 2018, Mastercard (MA) announced a partnership with Dream Payments to facilitate payments to insurance customers. Initially, Northbridge Financial, an insurance company in Canada, will utilize the Mastercard Send platform. The Canadian insurance industry makes payments worth billions of Canadian dollars per year.
Over the past few years, Mastercard’s (MA) revenues have remained consistent. According to the company’s management, of the total revenue growth, 75% came from core products like prepaid, debit, credit, and commercial cards. First, Mastercard is witnessing favorable momentum in its business because of the supportive economic environment.
On February 28, 2018, Mastercard (MA) made an announcement regarding the development of its Masterpass QR bot on Facebook Messenger. This move is for small business owners in Asia and Africa. This move aims to help small business owners target new markets through the help of digital tools.
In a comparative analysis, we try and find out which stock - Global Payments (GPN) or Total System (TSS) - is better positioned in terms of fundamentals.